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Chances of being approved, plus a delimna

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jevoyager
Established Member

Chances of being approved, plus a delimna

1. Mortgage Credit Scores: EQ 638, TU 739, EX 713 (Regular Scores: EQ 691, TU 728, EX 717)

2. Credit Negatives: Type: Student loan, Status: Closed/Paid (consolidated), DOFD: ~June 2010
This happened during consolidation. I didn't even realize there was a problem til long after the fact, and turned out the state run studnet loan program shut down so there wasn't even anyone to write to try to contest it (I tried but no one seemed to know who to even contact).
3. Gross Income: 43K

4. Source of income: Job (note mother has SS but only contributes to groceries)

5. Monthly debt payments: Student loans 186/mo (owe 166K on IBR plan), Car 320/mo (16+K left on 19K loan about 1yr old), Rent 800/mo, CC ~200/mo

6. Employment: Current job since Nov 2015, previous job 7+ years. Was a subcontractor at the 7yr job, got hired on at the place I was subcontracted to.

7. Assets/Reserves. Savings: 4K, 401k: ~10K when I last looked (I need to pull up a current statement)

8. Location: E. TN

9. Property Description: Single family home (only just starting to look so don't actually have one picked out yet)

10. Property Value: looking to keep it at 100,000 or less

11. Occupancy: myself and my mother (I'll be only one on loan)

12. Transaction Type: THDA/FHA program (THDA program gives 4% downpayment assistance)

13. Other: Long time renter (15+ years), at current place since Oct 2014, prev place about 2.5 yrs. Credit history 20 yrs, CC Debt ~5K, Available Credit ~20K, DTI ~20% (I think).

 

Any input if I may qualify is appreciated. I'd like to get an idea if it's worth me going through the pre-approval process (both paperwork and hit to credit score plus an inquiry). I am hoping to talk to a lender and see what advice they can give, but welcome everyone's input here as you all have been great with adivce.

 

 

As for the delimna (delima? condundrum, that one I can spell...). I have 4500 bal. on my Discover, and the 0%apr ends next month supposedly (I need to find my paperwork - a CR rep said early March, I could have sworn it was April/May). Originally I was going to pay most off with the money I now have in savings (back when I wasn't really thinking about buying a home). But knowing I'd want to move before my lease is up in Oct (I'm in a **bleep**ty house with **bleep**ty neighbors), the way rent is rising, and now that I know I'll be staying in one place for awhile, buying makes sense.  I had hoped when I got my Citi card 5 mo ago to get enough to transfer 2-3K to it but they only gave me 1K; hoping I may qualify for a increase once I hit month 6 - won't be until end of March.  So my options are use the savings for paying costs for buying a house (insurance, taxes, etc that I can't roll into loan, plus moving expenses, utility setup, etc), or put off buying right now and use at least half the savings to pay down the Discover card (I'm hesitant to take more than that out of savings in case of emergency).  I could potentially pay on CC and put off buying til later in the year and hope I can save back up enough (not sure just how much I'd need for home purchase? hoping I can get closing costs paid by seller, so just what's not included in that) and hope the rates/apr don't shoot up a lot, but that's a bit of a chance.  So what would you do?

5 REPLIES 5
GirlMelanie89
Established Contributor

Re: Chances of being approved, plus a delimna

Hi!! I think you have a pretty good chance of approval. Your scores are great, income is good and since you dont want to exceed a 100K house, your DTI is probably ok. Paying off your debt in your case, may be more about personal preference. If I had the option, I would keep m money in savings for a rainy day, deposit, etc snd just make agressive payments on the CC.

Bankruptcy discharged: May 2014 Starting Score: 571 Goal Score: 700
Current Score: 676 (EQ FICO) 674 (EX FICO) 662 (TU FICO)

Mortgage Loan Originator in Kentucky
Message 2 of 6
jevoyager
Established Member

Re: Chances of being approved, plus a delimna

Thanks, this is first time in recent history I'll have interest on a CC so was kinda freaked out about that (on top of being freaked out about buying a home, lol). It helped going online and figuring out how that works. While I don't like 'giving away money' by paying interest it's not near as bad as I'd figured in my head. So I'm pretty comfortable doing like you said and paying more aggressively on it, while using my savings toward whatever fees I need to pay that won't be covered by the seller/loan.

 

Now I just gotta wait for the lender to contact me to go over stuff.  I sent an email asking if we could talk about my general situation and get an idea if I'm a good candidate for a loan first.  But if all sounds good I think I'm gonna pull the trigger and do a pre-approval in the next week or two once I get paperwork together - if I can not loose my mind in the meantime! This whole thing has almost not been worth the stress (and then there's more to come! augh!)

Message 3 of 6
GirlMelanie89
Established Contributor

Re: Chances of being approved, plus a delimna

You are most welcome! Im in a similar but buy my scores are much lower. I have only 2 townhomes in mind and if I cant get either, I'll be waiting another year. But in my case, I think I am going to keep my money in savings and request down payment assistance at a 5.5% rate over a 10 year period. This is definitely a stressful situation, but kinda exciting.Keep me posted on the pre-approval porcess and I will keep you posted as well, as I am going to meet with a LO on Friday!

Bankruptcy discharged: May 2014 Starting Score: 571 Goal Score: 700
Current Score: 676 (EQ FICO) 674 (EX FICO) 662 (TU FICO)

Mortgage Loan Originator in Kentucky
Message 4 of 6
jevoyager
Established Member

Re: Chances of being approved, plus a delimna

Woo-hoo I just got a pre-approval! He said as long as there's nothing major when he gets my paperwork, shouldn't be a problem with underwriters. Since I don't have a house picked out yet, he wrote it for 100K but said I could probably go up as much as 120K (which I don't), but that does give me a little wiggle room if I find one right at like 99K and want to go up another 2K as an incentive for seller to pay closing costs.

 

I did find out I'll have to provide some paperwork on my mom since I file as HOH, and the THDA/FHA program wants proof of her tax status (and apparently the IRS site is down due to hacking so that will be a pain). and SS statement. Eugh. Otherwise it looks like pretty standard paperwork requirments, nothing too crazy.

 

I have 90 days from today to submit for full loan approval w/o them pulling another CR which is good, I was hoping to avoid another pull later on. Of course this means finding a house in the next month or two - hopefully the right one will come along (I've not exactly seen the 'perfect' house yet that made me go 'oh I want that' so we'll see). So, home shopping this weekend! Yay!

 

Good luck with the LO Friday, I hope they were as helpful and nice as the one I talked to. The referrel really helped I think, knowing the kind of person I'd be talking to based on a couple co-workers input.

Message 5 of 6
GirlMelanie89
Established Contributor

Re: Chances of being approved, plus a delimna


@jevoyager wrote:

Woo-hoo I just got a pre-approval! He said as long as there's nothing major when he gets my paperwork, shouldn't be a problem with underwriters. Since I don't have a house picked out yet, he wrote it for 100K but said I could probably go up as much as 120K (which I don't), but that does give me a little wiggle room if I find one right at like 99K and want to go up another 2K as an incentive for seller to pay closing costs.

 

I did find out I'll have to provide some paperwork on my mom since I file as HOH, and the THDA/FHA program wants proof of her tax status (and apparently the IRS site is down due to hacking so that will be a pain). and SS statement. Eugh. Otherwise it looks like pretty standard paperwork requirments, nothing too crazy.

 

I have 90 days from today to submit for full loan approval w/o them pulling another CR which is good, I was hoping to avoid another pull later on. Of course this means finding a house in the next month or two - hopefully the right one will come along (I've not exactly seen the 'perfect' house yet that made me go 'oh I want that' so we'll see). So, home shopping this weekend! Yay!

 

Good luck with the LO Friday, I hope they were as helpful and nice as the one I talked to. The referrel really helped I think, knowing the kind of person I'd be talking to based on a couple co-workers input.


Thats awesome!!!! Congratulations!!!!! Ahhh, IRS paperwork is always hectic in any situation.  I hope they can get you taken care of soon. I would go ahead and start requesting that documentation immediately. 90 days is awesome! Did he give you a good rate? Thank you so much! Ill le you know how it went! Smiley Happy

Bankruptcy discharged: May 2014 Starting Score: 571 Goal Score: 700
Current Score: 676 (EQ FICO) 674 (EX FICO) 662 (TU FICO)

Mortgage Loan Originator in Kentucky
Message 6 of 6
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